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Statutory Meeting of a Company - Brief Notes & Applicability

Provisions under the present Companies Act

There is no provision for statutory meeting under the Companies Act, 2013.

Provisions under the erstwhile Companies Act, 1956

Definition & Meaning: The term 'statutory meeting' is not defined under the Act. But as provided under section 165 of the Companies Act, 1956, it is a mandatory general meeting of the members of a company, which is required to be held within certain prescribed period of time.

Applicability: Statutory meeting is required to be held by every company limited by shares, and every company limited by guarantee and having a share capital.

Time LimitStatutory Meeting shall be held within not less than 1 month and not more than 6 months from the date from which the company is entitled to commence the business.

Frequency: Statutory meeting is held once in a lifetime of the company.

Statutory Report to Members: The Board of directors shall send the statutory report to the shareholders at least 21 days before the day on which the statutory meeting is scheduled to be held.

Statutory Report to ROC: This report is required to be submitted with the concerned Registrar of Companies by filing of e-form 22 at MCA.

Agendas of statutory meeting: Generally, the agenda of a statutory meeting is only to consider and adopt the Statutory Report, but the members of the company present at the meeting are at liberty to discuss any other matters.

AdjournmentThe statutory meeting may be adjourned from time to time. An adjourned meeting shall have powers same as an original meeting.

Statutory meeting not held: If the Board and officer-in-default do not arrange to conduct the statutory meeting, then every director or other officer of the company who is in default shall be punishable with a fine up to Rs. 5000.

Under sub-section (b) of section 433, a company may be wound up by the Court, if default is made in delivering the statutory report to the Registrar or in holding the statutory meeting.

Comments

  1. so is it compulsory to have a statutory meeting ?

    ReplyDelete
    Replies
    1. Not anymore. Since there is no such provision under the new Companies Act.

      Delete

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